South Korean households' excessive spending on education and housing is anticipated to weigh down the country's economic growth potential down the road, a report showed Sunday.
The outlook came as growth of the local service sector is anticipated to be dented as South Korean households' consumption activities are limited due to education and housing burdens, McKinsey & Company said in the report.
According to the firm's data, South Korean households spent 9 percent of their earnings on education in 2010, while the country's education spending accounted for 8 percent of its gross domestic product.
The company said such excessive spending could come as a major drag on the country's other industries, as it crowds out other types of spending.